No matter what industry, there should be 2 or 3 head enterprises. They did it earlier, and they got bigger and bigger, forming a positive vortex. We are called oligarchs. For example, alcohol is increasingly concentrated on high-end liquors such as Moutai and Wuliangye, soft drinks are concentrated on Coca-Cola and Pepsi, and milk is concentrated on Mengniu and Yili…
We found that the bigger the brands of these head companies are, the better they are. After full competition or industry reshuffle, they are increasingly concentrating on leading companies. Especially for this outbreak, for many small and medium-sized enterprises, it is even worse, which has accelerated the speed of industry reshuffle. The leading companies, with lower costs and higher efficiency, have higher brand awareness and recognition, so their anti-risk capabilities are also higher.
In the past two years, many companies’ business is not as good as before, but the leading companies are still growing. For example, in the catering industry, the impact of the epidemic is relatively large this time. The probability of leading companies getting bank loans is greater than that of SMEs. Therefore, in the face of the winner-take-all pattern of “oligopolistic enterprises”, do SMEs have a chance to win? As an “oligarch”, what kind of defense is the best defense?
One product, change one industry
In fact, the brands we see now are duopoly or tri-oligopoly companies. In the face of monopolistic oligarchs, whether it is Apple, Dyson, Ferrero, Canada Goose or Yakult, all of them have changed an industry through a single product.
As a challenger, we know very well that what marketing can do for us is mainly 4P—products, pricing, promotions and channels.
First, channels. Compared with oligopolistic enterprises, as “challengers” (or “followers”), first of all, offline channels certainly do not have an advantage. For example, the distribution rate of Arowana in the supermarket is 98%-99%, and Fulinmen is similar, so its channel control is very strong, and you do not have the advantage to fight with it. For online channels, the reason why live broadcasts have appeared since the second half of 2018 is because the traffic of large online platforms is almost saturated, and the cost of online drainage has almost exceeded offline. Moreover, whether it is an offline supermarket or a large online platform, merchants are more willing to leave resources to those who bring their own traffic and their own ability to spread, and at a glance they can become big explosives. Even offline supermarkets, if your products are particularly good, the merchants are willing to buy out in cash, do not want to give those goods that have no flow and want to rely on the supermarket to bring passenger flow. It can be seen that, whether it is online or offline channels, it is difficult to compete with leading companies. But if there is a good product to pull channels and attract attention, there is a chance. ?
Second, pricing. Pricing is related to cost. As a challenger, there is no opportunity to compete with the head companies for costs. Oligopoly companies are leading in the industry, with large sales and naturally low costs, which is incomparable to the companies that enter later. In this way, you can only choose product differentiation, that is, products have selling points, value, packaging, attractive, brand name is fun. In other words, product planning is the only way to increase the profit margin between cost and price. We often say that pricing is a matter of life and death, and there is no chance for companies that enter later to compete with oligarchs. So in the face of Perstown and Philips vacuum cleaners, Canada goose down jackets and Dyson vacuum cleaners are not cheap, that is to say that the product itself is done well, this is no problem.
Again, advertising promotions. As far as the overall environment is concerned, whether it is new media or traditional media, the effect of media advertising on the sales of brands and products is getting worse. Advertisements are “bombing” a lot, and everyone is naturally annoyed. But if your product itself is good, like small pot of tea, Jiang Xiaobai or Junlebao’s rose cheese, even traditional media advertising can help the product icing on the cake. If you are a new media, because the product itself is fun and interesting, then young consumers are also willing to bring their own “dry food” to help you take pictures, send a circle of friends to promote, free of charge as a new media promoter. On the contrary, if there is no good product, whether playing traditional media or new media, in the end, you can only play your media. I buy products that I like.
Therefore, for the challenger, channels, pricing, advertising and promotion are not dominant. If you want to challenge oligarchs, good product planning is the only effective weapon. If you don’t achieve the “first-shot”, just advertising will have no effect.
For example, Yili’s An Muxi, this is a big 20 billion item. An Muxi is normal temperature milk. In 2016, Yili’s normal temperature milk accounted for about 20% of the Yili milk category. Only three years later, in 2019, An Muxi’s single product almost doubled the sales of Yili’s full range of normal temperature milk. Some times, more than 40%. Is Yili’s positioning for An Muxi or an investment for the entire series of Yili? Amushi is Greek yogurt, the selling point is clear, but until today we do not know what the position of Yili is. This shows that a good single product can advertise this brand. I believe in Yili because An Muxi is delicious, and I am more willing to try other Yili products, which brings up the whole brand.
To put it simply, in the face of oligopoly companies, if there is no good product (annual sales exceed 200 million), it means that there is no star product, that is, they have not entered the head brand camp. At this time, if you want to promote the company’s brand through positioning, and make the company famous in one battle, thereby driving the sales of a full range of products, it is very dangerous. There are three major consequences:
First, consumers still don’t know “Which product should you buy in your home?” In the case of impulsive buying, consumers who buy at a discount will buy it;
Second, if the company does not have large single products, and many single products, it will lead to complex packaging materials, low supply chain efficiency, and low financial return;
Third, consumers have a buying inertia in the face of oligopolistic products, and ultimately it can only be “your home advertises and sells on competitive products.”
Therefore, to challenge the oligarchs, the best strategy is to concentrate all resources, plan, spread, and land a large single product (sales volume reaches 200 million+). Treat the product as the self-media of the company. Consumers will be good because of the product. Knowing your company, you are interested in seeing other products from the company.
Consumption has been upgraded, products have not been upgraded
We often say that consumption has been upgraded and products have not been upgraded. In this case, how do we make a big single product? This is also the key point of this article, that is, the planning and actual combat of the “first explosives”, we call the “explosives pass three levels” model. ?
At first glance, the product must have a first selling point, which is different from the original selling point-“the selling point must be there, but it is not enough”, that is, the original selling point of the old society may not be enough to challenge Oligopoly. There is a dairy industry that specializes in low-temperature milk, because the low temperature is more fresh, so it is called “daily fresh milk, which benefits every day.” Think about it, is its selling point enough for consumers who are accustomed to drinking Mengniu and Yili to try it? It’s hard. This is a classic selling point of the old society, such as Haifeisi anti-dandruff, Nongfu Mountain Spring is a bit sweet, Haidilao service is good, afraid of getting angry and drinking Wang Laoji, these are the selling points of the old society.
Why can’t the selling point of the old society be today? Because when Haifeisi entered the Chinese market, let alone oligarchs, there weren’t even serious competitors. China used bee flowers at that time, and the dandruff was the blue ocean. But today, the oligopolistic companies you are facing have already been built according to this gameplay. If you still have to do it in this respect, then you cannot do it.
Faced with oligarchs today, if you want to complete the “first selling point”, you have to try it at a glance. This must satisfy the following three points.
First, the difference is large enough. The difference is large enough to be intuitive and perceptible. For example, the low-temperature milk just mentioned, low-temperature milk can be obtained as long as there is a cold chain, the entry barrier is very low, and countless companies in the industry have mentioned the concept of low temperature freshness. Please note here that today, if you want to challenge an oligarch, your selling point, or positioning phrase, must not have been proposed by anyone. Because as long as it was proposed by someone else, either he didn’t do it, then you don’t have to think about it; or if he did it, then the consumer only recognizes others and there is no need to think about it.
Second, demand. Needs cannot be said to be psychological insights. Insightful psychology means that what is said in the mouth is not called demand. For example, if you buy a bottle of yogurt, after the first sip, someone will ask you “Is it delicious” instead of “fresh”? This is not a real demand. Therefore, there must be a demand that consumers have in their hearts but cannot express in their mouths in order to really move consumers to purchase.
Third, the scene is self-propagating. The media has become increasingly fragmented. If we want our products to spread and allow consumers to remember for a lifetime, we need to have a sense of the picture of the selling point or positioning of the product, which is the sense of the scene. For example, a family of high-end pork, who want to express good taste, the pork will be fragrant as soon as it is boiled with clean water. The sense of the scene in this scene comes out immediately, which is easy to remember and spread.
Challenge oligarchs to pass three levels
Finally, as shown in the figure above, as a market challenger, in order to successfully challenge oligopoly companies, you must pass three levels: planning, execution, and taste. These three levels must be completed in order, and finally form a closed loop to create a large single product, challenging oligopolistic companies, that is, “three levels have priority, customs clearance into a closed loop.”